If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn profits of:
A) $1,000
B) $16,500
C) $1,500
D) $15,000

Question

Quizplus · Accepted Answer

The profit can be calculated by subtracting the total cost from the total revenue. Therefore, the profit earned by the firm is $16,500 - $15,000 = $1,500. Therefore, the correct answer is option C.

If the Total Costs of Producing 1,500 Units of Output